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The effect of emergency financial assistance on employment and earnings

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  • Hungerman, Daniel
  • Phillips, David
  • Rinz, Kevin
  • Sullivan, James

Abstract

We examine the labor supply effects of short-term income transfers for families experiencing a housing crisis. We link callers to an emergency assistance homelessness prevention hotline to their federal tax records and measure their earnings in the years surrounding their calls. Our methodology exploits quasi-random variation in the availability of assistance to compare similar families receiving and not receiving funds. Looking up to four years post-assistance, we find evidence, especially for the lowest earners, of earnings gains, and overall we find no evidence that assistance lowers earnings. Our results indicate that any income effect of temporary transfers for those in crisis is minimal and that these targeted transfers may convey labor market benefits for the poorest of the poor.

Suggested Citation

  • Hungerman, Daniel & Phillips, David & Rinz, Kevin & Sullivan, James, 2026. "The effect of emergency financial assistance on employment and earnings," Journal of Public Economics, Elsevier, vol. 259(C).
    • Handle: RePEc:eee:pubeco:v:259:y:2026:i:c:s0047272726000952
    DOI: 10.1016/j.jpubeco.2026.105659
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    Keywords

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    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • I39 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Other
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

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